Disclosures

 

Options Risk Disclosure

Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a client must receive a copy of the Characteristics and Risks of Standardized Options. Copies of this document are available upon written request to info@thelampost.com or from any exchange on which options are traded.

 

Payment for Order Flow Disclosure

The Securities and Exchange Commission has implemented a requirement that brokerage firms, including Lampost Capital, L.C., disclose to their customers, when a new account is opened, and on an annual basis thereafter, their policies and practices regarding receipt of “Payment for Order Flow.”  “Payment for Order Flow” is compensation paid to a brokerage firm by a registered Stock Exchange or Association or by another Broker-Dealer in return for directing customer orders for execution.

Types of Payment for Order Flow Lampost Capital, L.C. may receive may include profit participation from specialists or market-makers in connection with the profitability of the specialist or market-maker from the orders which are routed, or fixed payments on a per share or per contract basis depending upon the type of order and spread of the inside market of the security or option contract at the time the order is routed.  The payment may be in the form of cash or non-cash payments, reduction of other fees or execution charges charged by the market-maker, Exchange or Association, or reciprocal business arrangements.  

The factors considered in determining where to send an order include (1) opportunity for price improvement over other available prices, (2) reputation of the exchange specialist or market-maker, (3) size of the order (4) quality of previous order executions and (5) payment for order flow.

When an order is executed at a price that is more favorable than existing quotations, it has received “Price Improvement.”  When orders are routed to a specialist or market-maker, they are exposed to other orders, if any, represented on that exchange or held by that market-maker at that time.  In that way, they may receive an execution between the existing bid/asked spread, which would be at a more favorable price than an order to buy executed at the offer or an order to sell executed at the best bid.

Lampost Capital, L.C. is eligible to make markets in equity securities. As a result, it is possible that order flow received by Lampost Capital, L.C. could be executed on an internalized basis. Therefore, Lampost Capital, L.C. stands to share in 100% of whatever profits it generates from internalizing customer order flow.

Lampost Capital, L.C. may route order flow to multiple exchanges, Electronic Communication Networks (“ECN’s”), dark pools or other execution venues to meet its best execution obligations. In sending order flow to these venues, Lampost Capital, L.C. may receive reductions in its monthly venue charges in the form of rebates. At present these rebates may range up to $0.33 per 100 shares or up to $1.00 per option contract routed and executed.

In accordance with SEC Rule 606, Lampost Capital, L.C. will, upon your request, disclose to you the identity of the venue to which your directed and non-directed orders were routed for execution in the six months prior to your request, as well as the time of the transactions, if any, that resulted from such orders.  Our 606 report, if applicable, is available for review by clicking this link.

 

Privacy Policy

Our Commitment to Your Privacy:  Lampost Capital, L.C. ("Lampost") has a long standing policy of protecting the confidentiality and security of information we collect about our customers.  We will not share nonpublic information about you ("Information") with third parties outside of our clearing firm without your consent, except for the specific purposes described below.  This notice describes the Information we may gather and the circumstances under which we may share it.

Why We Collect and How We Use Information:  We limit the collection and use of Information to the minimum we require to deliver superior service to you. 

How We Gather Information:  We get most Information directly from you, when you apply for, access and use services offered by us -- whether in person, by telephone or electronically.  We may verify this information or get additional information from consumer reporting agencies or public sources.  This Information may relate to your finances, employment, avocations or other personal characteristics, as well as transactions and interactions with or through our clearing firm, us or others. 

How We Protect Information:  Our employees are required to protect the confidentiality of Information and to comply with our established policies. They may access Information only when there is an appropriate reason to do so, such as to administer our products or services. We also maintain physical, electronic and procedural safeguards to protect Information which comply with all applicable laws.  Employees who violate our Privacy Policy are subject to disciplinary process.

Disclosure of Information:  We may disclose any Information to or as directed by our clearing firm or when we believe it necessary for the conduct of our business, or where disclosure is required by law.  For example, Information may be disclosed for audit or research purposes, to attorneys or other professionals, or to law enforcement and regulatory agencies, for example, to help us prevent fraud.  In addition, we may disclose Information to third party service providers (i) to enable them to provide business services for us or our clearing firm, such as performing computer related or data maintenance or processing services for us or our clearing firm, (ii) to facilitate the processing of transactions requested by you, (iii), to assist us in offering products and services to you or (iv) for credit review and reporting purposes.  Except in those specific, limited situations, without your consent, we will not make any disclosures of Information to other companies who may want to sell their products or services to you.  For example, we do not sell customer lists and we will not sell your name to a catalogue company.  It is Lampost’s policy to require all third parties other than our clearing firm, that are to receive any Information to sign strict confidentiality agreements.

Former Customers:  Even if you are no longer our customer, this Policy will continue to apply to you.

To Whom This Policy Applies:  This Privacy Policy applies to products or services provided by Lampost used primarily for personal, family, or household purposes (not business purposes).

Access to and Correction of Information:  If you desire to review any file we may maintain for your personal Information, please contact us.  If you notify us that any Information is incorrect, we will review it.  If we agree, we will correct our records.  If we do not agree, you may submit a short statement of dispute, which we will include in future disclosures of the disputed Information.  Information collected in connection with, or in anticipation of, any claim or legal proceeding will not be made available. 

Further Information:  We reserve the right to change this Privacy Policy.  The examples contained within this Privacy Policy are illustrations and they are not intended to be exclusive. This notice complies with a recently enacted Federal law and new SEC regulations regarding privacy.  You may have additional rights under other foreign or domestic laws that may apply to you.